PPC Advertising Explained

Advertising on the Internet has always been a bit of a minefield for people being new to online advertising. Banner advertising, text link advertising, CPM, CPA, PPC, email advertising, SPAM - finding the way through this minefield can be very confusing and expensive if the advertiser does not what he is doing. When Pay-Per-Click advertising entered the market the advertisers gained a big piece of control.

With Pay Per Click advertising, the advertiser remains in control of the advertising campaign. He is able to target the audience and to set his own price per click (pay per click). Most PPC Advertising Networks provide the platform to specify the target audience by geographic location and topic or industry. The advertising networks have websites of publishers lined up where those ads will be displayed.

In PPC advertising the advertiser creates his ad and sets a limit per click that he is willing to pay. Most advertising networks provide tools to see how that pay per click limit applies to other advertisers bids for the same audience/industry. This will allow the advertiser to see if his pay per click limit is competitive and if his ad would be shown at all. The advertising networks will display those ads up on top of an ad location that pay most per click. The higher the bid, the better the chances of an ad to be seen.

On the first look PPC advertising sounds expensive. What would happen if you have somebody going rampage and clicking on the advertisers ads repetitive over and over again. Imagine your competition ruining your business by clicking your ads like crazy. In theory this could bump up the bill for the advertiser dramatically. But advertising networks usually have some sort of protection build in to recognize click fraud. That way the advertiser can rest assured that his money is running down the drain on fraudulent incidents. The advertiser also has the opportunity to set a daily budget for his ads. Once the budget has been fully used his ads will no longer be displayed until either the budget is increased or the next day starts. Pay Per Click advertising offers the advertiser the opportunity to advertise to a world wide audience without ever going over his budget, no matter how small the budget is.

Depending on the advertising network ads will be displayed in search engines or on regular websites.

Although relatively easy straightforward to set up, PPC campaigns are not easy to be measured in terms of success. It takes many hours and days of research into your business and competitors to find the right combination of pay per click limit, ad copy and target audience. Running PPC campaigns can be a full time job by itself. That is why some companies choose to completely outsource their campaigns to PPC Management companies, in order to get the most ROI (Return of Investment). Usually these are players with large interest in a certain market and with pockets deep enough to pay for this kind of service.

Advertising via PPC is different but then it is not. It gives the advertiser more control in many directions. The advertiser can react faster to trends and respond better to changing market conditions.

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